Purchase Tax

Any tax paid to the VAT dept on purchase of goods from an Unregistered dealers is considered as Purchase tax.

This purchase tax concept behaves differently as per State VAT Act and Rules.

For example, In Karnataka, Unregistered Dealer purchases will be considered as Sales Turnover. Also when such purchases are made, purchasing dealer has to pay tax (purchase tax) to the dept. Later to the extent of such goods sold dealer can claim Input tax credit.

Subramanya

Dear Mr.Subramanya,

Purchase Tax have to pay at time purchase from unregistered dealer. But,  we cann't claim input tax on purchase tax.

Please check once again

Originally posted by : CMA.Baskar.V
	Dear Mr.Subramanya, Purchase Tax have to pay at time purchase from unregistered dealer. But,  we cann't claim input tax on purchase tax. Please check once again

Dear Mr.Baskar,

When we refer Form VAT 100 - Box No. 9.4 and 9.14, its nothing but the Input tax credit of Value of URD purchases to the extent used.

I think we can avail input tax credit on the purchase tax paid at a later period of time in Karnataka.

If correct me if I am wrong.

Subramanya